Introduction to Industry and Its Characteristics

Industry

• Industry is a part of business activities focused on producing goods and services.
• It's a productive occupation.
• Industry encompasses raising, producing, processing, or fabricating goods.
• Products can be consumer goods (used by final consumers) or producer goods (used in further production).

Characteristics of Industry

• Industries create form utility, transforming raw materials into finished goods.
• Industries focus on producing goods and services.
• Products can be consumer goods or capital goods (producer goods).
• Industries are aimed at producing goods and services for sale.
• Industries produce goods and services on a recurring or regular basis.
• Industries aim to generate profit.
• Industries require capital investment.
• Industries involve risks

Types of Industries

• Industries can be categorized based on the goods or services produced.
• Industries can be categorized into primary, secondary, and service sectors.
• Primary industries involve extracting natural resources (e.g., mining, agriculture).
• Secondary industries transform raw materials into finished products (e.g., manufacturing).
• Service industries provide intangible services (e.g., transportation, banking).

Types of Primary Industries

• Extractive Industries: Extract resources from the earth, air, water, or nature. Examples: Mining, agriculture, fishing, lumbering, and hunting.
• Genetic Industries: Concerned with breeding, growing, and producing plants and animals. Examples: Nurseries, cattle breeding, poultry farms, fish hatcheries.

Types of Secondary Industries

• Manufacturing Industries: Transform raw materials into finished products.
  • Analytical Industries: Break down raw materials into multiple products (e.g., oil refineries).
  • Synthetic Industries: Combine materials to create new products (e.g., cement, paper).
  • Processing Industries: Process materials through different stages (e.g., textile manufacturing, food processing).
  • Assembling Industries: Combine pre-made components to form a final product (e.g., automobile manufacturing).
  • Integrated Industries: Combine processing and assembling under one enterprise (e.g., iron and steel).

Construction Industry

• Construction industries create infrastructure (e.g., buildings, roads, bridges).
• They use raw materials from extractive industries and manufactured goods.

Service Industries

• Service industries provide intangible products like services rather than physical goods.
• Services can be either personal or non-personal (e.g., dyers, banking services, advertising).